Economic week of Kyrgyzstan Aug. 19 - 24, 2019

The current business week in Kyrgyzstan was characterized by the activity of the business environment and government bodies that are involved in the development of the country's regions. Most of the weekly events were associated with projects and their financing aimed at the development of regions. The main attention is paid to such important points as reducing migration, creating new jobs, improving the conditions for financing and lending to such projects.
Loans issued.In 2019 microcredit organizations already issued loans worth KGS 13 billion 741.7 million, while the number of recipients amounted to 295 thousand people.
According to data of the National Statistics Committee of the Kyrgyz Republic, compared with the corresponding period last year, the number of people received microcredits increased by 33.8%, and the volume of microcredits issued - by 31.5%.
The largest amounts of microloans were issued to recipients of Osh Oblast (20.6% of the total volume of microloans issued), Bishkek (19.6%), Jalal-Abad (13.9%) and Chui (13.8%) regions.
Of the total volume of microloans issued in January-June 2019, 33.8% was directed to the development of activities in agriculture, 25.1% were borrowed for consumer needs, 13.3% - to the sphere of trade and public catering.
Electric debt. As of Aug. 1, 2019, the debts of subscribers of OJSC Severelectro for electricity amounted to KGS 390.02 million.
According to company's data, in July the receivables of consumers decreased by KGS5.83 million or 1.47%.
Digital signature. This week it was announced that VAT payers should receive an electronic digital signature (EDS) within two days.
According to the Deputy Chairman of the State Tax Service of the Kyrgyz Republic, Ulukbek Samyibekov, tax reports for July will be accepted only in electronic format. This measure is introduced so that entrepreneurs have time to pay taxes for July. For indirect taxes until Aug. 26, for large taxpayers until Aug. 30.
"Today, about 7 thousand payers have already acquired an electronic digital signature. In total, there are about 10 thousand payers. There are two more days to acquire an EDS,"said Samyibekov and added that fines for not acquiring a digital signature were not provided.
Loans from KRDF. For 7 months of 2019, the Kyrgyz-Russian Development Fund funded projects worth KGS 4.4 billion. More than KGS 2.7 billion were used to fund projects from the regions.
Cmpared to the same period in 2018 an increase is observed more than 2 times. Chairman of the Board of the Kyrgyz-Russian Development Fund Erkin Asrandiev noted that the largest amount of funding goes to the regions, as part of the regional development policy, separate startup financing programs have been launched in the Talas, Naryn and Batken regions.
"In addition, a program has been launched to finance startup projects for start-up entrepreneurs in all regions. This program also includes training components, training activities in the areas started from today. In general, the program will be implemented during August-September 2019, "Asrandiev said.
Agricultural loans. The leaders of Aiyl Bank OJSC and RSK Bank OJSC announced the measures taken by them to finance regional projects and agriculture.
"Over the past 3-4 years, Ayil Bank has financed business projects in the field of commerce, trade, and construction. Now we are balancing this situation, since our task is to channel at least 60% of the funds into the agricultural sector," said Baktybek Shamkeyev, Chairman of the Board of Aiyl Bank OJSC.
According to him, if at the end of 2018, 52% of financial resources were allocated to agriculture, then by August 2019, Aiyl Bank increased the amount of funds to 65%. The funds are used to reduce internal and external migration, to create new jobs by financing agricultural processing enterprises and growing competitive products.
Azizbek Omorkulov, the head of RSK Bank, noted that the branches of RSK Bank OJSC are financing entrepreneurs from the regions as a priority. As part of the digitalization, the bank launched the RSK-24 mobile application, through which it is possible to pay for all types of taxes, fines and state budget payments.
Shamkeyev and Omorkulov added that Aiyl Bank OJSC and RSK Bank OJSC are actively working on integration with the Tunduk system of interagency electronic interaction to reduce time costs and optimize work.
Warranty funds. In 2019 78% of the funds of the Guarantee Fund were allocated for lending and providing guarantees in the regions.
Head of the Board of the Guarantee Fund OJSC Malik Abakirov noted that in 2019, the Fund's main priority is the support of regional projects.
It was especially noted that the experience of the Kyrgyz model of the Guarantee Fund is interesting to the partner countries from the CIS, as well as to international financial institutions. At the moment, the experience of Kyrgyzstan is used in the implementation of the Guarantee Fund in Tajikistan. It is also expected that the activities of the Guarantee Fund OJSC will be considered as one of the best among the countries of the founders of the Asian Development Bank.
Branch of Kazakh Export. This week in the capital of Kazakhstan, Minister of Foreign Affairs of the Kyrgyz Republic Chingiz Aidarbekov held a meeting in Nur-Sultan with Chairman of the board of Kazakh Export JSC Ruslan Iskakov as part of a high-level meeting in the "C5 + 1" format. They discussed issues of further development of trade and economic ties between Kyrgyzstan and Kazakhstan.
Aidarbekov focused on the development of export-oriented industries, the creation of joint ventures for exporting finished products to other countries.
Iskakov informed about the current activities of Kazakh Export, and also noted his readiness for further development of mutually beneficial cooperation.
The parties agreed by the end of 2019 to open a Representative Office of Kazakh Export in the Kyrgyz Republic.
Funds for loans. The conditions for obtaining budget funds for the development of regions became known.
According to head of the Department for Regional Development Policy of the Ministry of Economy of the Kyrgyz Republic Aibek Kadyrov, in order to financially support the development of the regions, an order was issued regarding a tender committee that will allocate KGS 2 billion. The commission has already been approved, it consists of 11 people.
Budget funds will be used for the implementation of infrastructure projects - 20% of all funds, for investment projects and development programs - 80%.
To date, 4 business projects have already been selected.
Selection of projects. In Kyrgyzstan, the selection of business projects that are aimed at developing the country's regions continues.
Earlier, in order to financially support the development of the country's regions, an order was adopted regarding a specially created tender committee, which will distribute KGS 2 billion. The Investments Promotion and Protection Agency of the Kyrgyz Republic is the secretariat and has certain functions.
According to Shumkarbek Adilet uulu, the director of the Agency, criteria were previously approved according to which business projects will be approved. These projects are export-oriented using innovative technologies, job creation and so on.
Another Memorandum. This week, the Ministry of Economy of the Kyrgyz Republic and the Association of Legal Entities "Association of the Kyrgyz-Russian Business Council" signed a Memorandum of Cooperation. The Association is closely connected with the Russian Federation, with which Kyrgyzstan has close ties in various fields.
The parties concluded a Memorandum on the basis of mutual interest in the development of bilateral economic cooperation between the Kyrgyz Republic and the Russian Federation, as well as in the development of multilateral ties on a stable and long-term basis, to create appropriate organizational and other necessary conditions.
According to the Ministry of Economy of the Kyrgyz Republic, the purpose of the Memorandum is to establish partnerships and develop long-term, effective and fruitful cooperation between the parties.
Kabar News Agency